Certified Blood Donor Services, Inc. v. United States

511 F.2d 572, 62 C.C.P.A. 66, 1975 CCPA LEXIS 176
CourtCourt of Customs and Patent Appeals
DecidedMarch 6, 1975
DocketNo. 74-31, C.A.D. 1147
StatusPublished
Cited by7 cases

This text of 511 F.2d 572 (Certified Blood Donor Services, Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Customs and Patent Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Certified Blood Donor Services, Inc. v. United States, 511 F.2d 572, 62 C.C.P.A. 66, 1975 CCPA LEXIS 176 (ccpa 1975).

Opinion

LaNE, Judge.

This is an appeal from the judgment of the United States Customs Court1 overruling appellant’s complaint against the classification of certain diagnostic serums as an “article, not provided for elsewhere,” under item 799.00 of the Tariff Schedules of the United States (TSUS), and rejecting appellant’s claim that the imported serums are “therapeutic serums,” “antitoxins,” or “analogous biological products” under item 437.76, TSUS. We reverse.

[67]*67 The Statutes

The protested classification is:

Schedule 7. Part 14. — Nonenumerated Products Any article, not provided for elsewhere in these schedules:
Which is similar in the use to which it may be applied to any article or articles enumerated in any of the foregoing provisions of these schedules as chargeable with duty:
‡ ‡ $ 3* $
799.00 Other_ 9% ad val.

The claimed classification is:

Schedule 4. Part 3. — Drugs and Related Products
* £ * * * * #
437.76 Viruses, therapeutic serums, vaccines, toxins, antitoxins, and analogous biological products; human blood and fractions thereof: human skin and bone grafts, and other anatomical parts of the human body prepared for diagnostic or therapeutic purposes_ Free

The Imported Merchandise

The merchandise, imported in 1968, was invoiced by the West German manufacturer (Behringwerke AG.) as follows;

Anti-Gamma-M-Glob. Serum from rabbit.

Anti-Gamma-G-Glob. Serum from rabbit.

Anti-Gamma-A-Glob. Serum from rabbit.

The testimony of the sole expert witness, Stephan E. Eitzmann, M.D., established that the imported serums (also known as antisera) are manufactured in the following manner. The first step is to isolate and purify a certain protein (called an immunoglobulin) in a blood sample from a human having a blood disorder called monoclonal gammopathy. Dr. Eitzmann characterized this disorder as a type of cancer involving a proliferation of the blood cells which produce immunoglobulins. He further stated that there are five specific types of immunoglobulins; IgA, IgG, IgM, IgD, and IgE, respectively. It is apparent that the imported serums, as denominated on the invoice, correspond to three of the five immunoglobulin types.

The second step is to inject one immunoglobulin into a normal rabbit. The rabbit’s body responds by producing antibodies which are specific to the injected immunoglobulin. After a certain latent period, the rabbit’s blood is drawn and examined for the presence and potency of antibodies directed against the immunoglobulin. If the potency and specificity are satisfactory, then large amounts of blood are drawn and [68]*68processed. The processing consists essentially of separating the red cells from the slightly yellow fluid, referred to as serum, which contains the antibodies. The serum is packaged in vials and, in this form, is imported.

Dr. Eitzmann also testified how the imported serums are used in diagnostic reagents. They are employed in immunoelectrophoresis (IEP), which is the method of choice for the diagnosis and differential diagnosis of monoclonal gammopathy. According to Dr. Eitzmann, IEP analysis proceeds as follows: first, a serum sample from a patient is placed on a plastic slide coated with agarose; second, this serum sample is electrophoresized, that is, subjected to an electric current which results in the migration into various position of the immunoglob-ulins in the serum; third, one of the imported diagnostic serums is added to the plastic slide; and finally, if there is an antigen-antibody reaction between an abnormal immunoglobulin from the patient and the antibodies in the imported diagnostic serum, a precipitin line will appear on the slide, thus indicating a specific type of monoclonal gammopathy. For example, referring to plaintiff’s Exhibit 2 (an IEP slide), Dr. Eitzmann testified that certain arcuate lines therein reflected the presence of an abnormal IgG type of immunoglobulin and thus indicated this type of monoclonal gammopathy in the patient. The type of medical therapy for a patient will be dependent upon the type of nonoclonal gammopathy diagnosed.

The Oral Stipulation

At the trial, counsel for the parties orally stipulated as follows: (Bracketed matter and emphasis ours.)

[Defendant's counsel!!: Tour Honor, as part of Government’s opening statement, I offer to stipulate with plaintiff that the subject merchandise at the time of importation did not have a license issued to it under the provisions of the Public Health Service Act, 42 USO, Section 262.2
[69]*69[Plaintiff's counsel!: Nor was one required. Would you add that, and I will stipulate?
[Defendant’s counsel!: Nor was one required, as added by plaintiff’s counsel.
[Plaintiff’s counsel!: I so stipulate.

Ill tbe opinion of the Customs Court, the oral stipulation is referred to as follows:

Furthermore, in determining whether the imported antisera fall within the purview of item 437.76, it is a relevant consideration that at the time of importation of the antisera no license was issued or required by the Secretary of Health, Education, and Welfare pursuant to 42 USC § 262, as stipulated by the parties.

Appellant (plaintiff below) makes the following statement in its brief on appeal:

Counsel for appellant, after the decision was published, learned for the first •time that Behringwerke, A.G-., the establishment producing the imported diagnostic serums did possess an Establishment License No. 97 under the Public Health Service Act of July 1,1944. Of course the existence of this Establishment License was not proved at the trial and is not subject to judicial notice.

Legislative History

The opinion of the Customs Court contains the following passage regarding the legislative history of item 437.16, TSUS (Bracketed matter and emphasis by the Customs Court.) :

As an aid to interpreting item 437.76, TSUS, defendant cites the Tariff Glassi-fication Study Explanatory and Bach ground Materials, November 15, I960,2 Schedule 4, part 3, p. 86, which states:
* * * Also, the provisions of items 437.44 through 437.52, as published, relating to biologicals provided for in paragraph 1610 have been consolidated and enlarged in scope in final proposed item 437.76 to do away with certain artificial distinctions now involved and thereby make a more coherent group of related articles which substantially correspond with the scope of the licensing requirements of the Public Sealth Service and the Department of Agriculture applicable to the importation of certain biological products. Human blood and fractions there of [sic] and anatomical parts of the human body have been specifically added to the new provision. The rate changes involved in item 437.76 are unimportant. [Emphasis added.]
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The Decision Below

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511 F.2d 572, 62 C.C.P.A. 66, 1975 CCPA LEXIS 176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/certified-blood-donor-services-inc-v-united-states-ccpa-1975.